Adaptive model-based control systems and methods are described so that performance and/or operability of a gas turbine in an aircraft engine, power plant, marine propulsion, or industrial application can be optimized under normal, deteriorated, faulted, failed and/or damaged operation. First, a model of each relevant system or component is created, and the model is adapted to the engine. Then, if/when deterioration, a fault, a failure or some kind of damage to an engine component or system is detected, that information is input to the model-based control as changes to the model, constraints, objective function, or other control parameters. With all the information about the engine condition, and state and directives on the control goals in terms of an objective function and constraints, the control then solves an optimization so the optimal control action can be determined and taken. This model and control may be updated in real-time to account for engine-to-engine variation, deterioration, damage, faults and/or failures using optimal corrective control action command(s).